Jack consumes one-hundred steaks and fifty glasses of coca-cola when the price of a steak is and the price of a glass of coca-cola is . If the price of steak rose to and the price of a glass of coca-cola rose to , what is the smallest amount of additional income that Jack would need in order to still be able to afford his original consumption bundle? (Assume that Jack's preferences are locally non-satiated.)Question 20Select one:a..b..c..d..e.None of the other alternatives are correct.

Jack consumes only Bread (good x) and Cheese (good y). His utility function is given byU (x, y) = ln(x) + ln(y)(a) Find Jack’s marginal rate of substitution (MRS) at bundle (x, y).(b) The price of good x is $6 and the price of good y is $3. Jack has an income of $120. Findhis utility-maximising consumption bundle.(c) Calculate Jack’s utility from the bundle you have found in part (b). (You can leave youranswer expressed in logarithm.).(d) In a graph with the quantity of x on the x-axis and the quantity of y on the y-axis, drawJack’s budget line, clearly marking the intercepts and the utility maximising bundle youhave solved in part (b) (call it bundle A). Also sketch an indifference curve passing throughbundle A.(e) Now the price of good y increases to $6 while the price of good x remains at $6. Jack’sincome remains at $120. Calculate his new utility-maximising consumption bundle.(f) On the diagram you have drawn for part (d), draw Jack’s new budget line, clearly markingthe intercepts and the new optimal bundle you have solved in part (e) (call it bundle B).Also sketch an indifference curve passing through bundle B.(g) Find the minimal expenditure required for Jack to achieve his original utility level (i.e.,your answer to part (c)) under the new prices. As you are finding this minimal expenditure,solve for the expenditure-minimising bundle that achieves the original utility level underthe new prices.(h) On the diagram you have drawn for parts (d) and (f), draw the budget line associatedwith the minimal expenditure you have solved in part (g), clearly marking the interceptsand the expenditure-minimising bundle you have solved in part (e) (call this bundle H).

Consider a consumer who can buy good 1 or 2. The price of good 1 is $5 and the price for good 2 is $4. The consumer has income of 60. She buys 12 units of good 2. The consumer wants to also purchase 2 units of good 1. Which statement is true?Group of answer choicesThis is feasible, as the consumer is inside her budget setThis is outside the consumer’s budget set – it is unaffordableThis is affordable – the consumer would be consuming on her budget constraintall of the abovenone of the above PreviousNext

Garcia is currently spending his entire lunch budget on 3 sodas and 4 hot dogs. At his current level of consumption, Garcia’s marginal utility for sodas is 5 utils and his marginal utility for hot dogs is 10 utils. In order to maximize his total utility, Garcia should aconsume more sodas and fewer hot dogs regardless of the prices bconsume more hot dogs and fewer sodas regardless of the prices cmaintain his current level of consumption of sodas and hot dogs regardless of the prices dmaintain his current level of consumption if the price of a soda is $1 and the price of a hot dog is $2 emaintain his current level of consumption if the price of a soda is $2 and the price of a hot dog is $1

Crina has a budget of $30 each week for lunch. Sub sandwiches cost $5 each, and sodas are $1 each as shown on the graph below. At what point on the graph would Crina purchase zero sodas and only sub sandwiches? aPoint B. bPoint A. cPoint D. dPoint F. ePoint G.

Lucy’s sister, Mary, also insists on a particular combination of ice-cream and cones. Unlike Lucy, however, Mary must consume these two goods in the com￾bination of α2 scoops of ice-cream and α1 cones. Mary is envious of Lucy and wants to achieve the same utility level that Lucy gets when she is consuming her optimal bundle in (b). What is the minimum income that Lucy’s and Mary’s parents must give to Mary so that she can achieve the utility level of Lucy at the current prices? Is this income greater or lower than the income of Lucy in (b)